Bitcoin's push towards $80,000 was short-lived on Monday, as the cryptocurrency's price slipped back to $76,600 during the US trading session, driven by renewed geopolitical concerns. Following an overnight high near $80,000, its highest level since early February, bitcoin reversed direction, posting a 1.5% decline over the past 24 hours. Major alternative cryptocurrencies, including ether, XRP, and solana, also fell, each declining around 3%, while the CoinDesk 20 Index, a benchmark for the broader digital assets market, dropped 2% on Monday.
The pullback comes as investors become increasingly cautious about the prospects for US-Iran negotiations and the ongoing disruption to the Strait of Hormuz, a critical global oil transit route. A recent proposal by Iran to halt attacks on ships in the strait in exchange for a full end to the war, including the lifting of the US naval blockade and a delay in nuclear talks, aims to restart stalled negotiations, but uncertainty remains high after President Trump canceled plans to send envoys to Pakistan for negotiations with the Iranian side.
Oil prices continued to rise, with Brent crude oil prices climbing over 3% to $107 a barrel, while West Texas Intermediate crude oil rose 2.6% to $97. The Nasdaq edged 0.3% lower in morning trading, retreating from recent record highs, while the S&P 500 was flat ahead of a significant earnings week. Meanwhile, stocks linked to the crypto sector declined, with shares of crypto exchange Coinbase falling 1.5%, while Circle, the issuer of the USDC stablecoin, dropped 3.5%, and Galaxy Digital, a digital asset investment firm, slid nearly 6%.
Underlying bitcoin's price action is a market struggling to build momentum despite strong institutional demand. Bitfinex analysts noted that short-term bitcoin holders who are in profit have been selling into strength, offsetting fresh demand from ETF buyers. The analysts believe that the path of least resistance in the near term is likely consolidation or a pullback towards the $75,000 region, adding that a decisive break above $80,000 is required to confirm a more durable bullish regime.